Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

Tobacco in Ukraine

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Executive Summary

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Different trends in different categories

Different trends were observed in tobacco in Ukraine in 2017. Retail volume sales of cigarettes declined, mainly due to the decrease in smoking prevalence amongst the adult population.

The number of cigarette smokers declines, while the number of vapers grows

In 2017, tobacco was impacted by a further decline in both the number of smokers and smoking prevalence in the country. These declines were informed by tangible increases in excise duty and higher prices, which made smoking less affordable for many consumers.

Multinationals lead tobacco

The competitive environment remained tough for tobacco manufacturers and distributors due to the low level of real consumer incomes, the advertising ban and falling smoking prevalence in the country. Higher resources and expertise enabled multinationals to maintain a stranglehold on the industry.

There were no significant changes in the distribution of cigarettes, cigars and cigarillos and smoking tobacco in 2017. Traditional grocery retailers continued to lead these categories, although modern grocery retailers continued to grow in popularity.

Further pressure on retail volume sales in the forecast period

A further decline in retail volume sales of cigarettes is expected over the forecast period due to new tax hikes and price increases. In addition, stronger legislative restrictions are anticipated.

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